F-SECURE FRONTRUNNER IN CYBER SECURITY FOR 30 YEARS Samu Konttinen, CEO, F-Secure 1
F-SECURE IN A NUTSHELL Award-winning cyber security products & worldclass cyber security services Revenue by region 12 % Revenue by business Established in 1988, Listed in 1999 10 % 37 % 43 % 1,100 employees Offices in 23 locations 57 % 41 % Revenue: EUR 170 million EBIT: EUR 12 million Nordics Rest of Europe Corporate security Consumer security North America Rest of the world 2
SPENDING IN CYBER SECURITY GLOBAL HAS INCREASED RAPIDLY 2017 SPENDING IN CYBER SECURITY HAS INCREASED 2011 RAPIDLY 90 Billion 2017 2011 50 Billion 50 90 Billion 3
MEGATRENDS SUPPORT FUTURE GROWTH REGULATION GEOPOLITICS CLOUDIFICATION CYBER ATTACKS Increasing demand for cyber security products and services DIGITALIZATION Evolving threat landscape No 100% protection More data sources Automation and AI Visibility Increasing complexity Lack of trained personnel Cost of expertise NEED FOR DETECTION AND RESPONSE NEED FOR BETTER SECURITY ORCHESTRATION NEED FOR OUTSOURCING 4
CORPORATE SECURITY CONTINUES TO DRIVE THE GROWTH USD billion INFORMATION SECURITY REVENUE FORECAST 2015-2021 +8.9% annually +7.7% annually +1.7% annually Source: Gartner, Feb 2018 5
WE ARE INVESTING IN FAST GROWTH SEGMENTS ENDPOINT PROTECTION ENDPOINT DETECTION & RESPONSE VULNERABILTY MANAGEMENT CYBER SECURITY SERVICES CONSUMER SECURITY Mature Emerging Fast growth Fast growth Mature 3,5 BILLION 0,4 BILLION 1,0 BILLION 16,0 BILLION 4,6 BILLION CAGR 2016-21 2.7% CAGR 2015-20 45.3% CAGR 2015-20 13.0% CAGR 2015-20 10.0% CAGR 2016-21 1.7% Source: Gartner Source: Gartner Source: IDC Source: Markets&Markets Source: Gartner 6
EMERGING MARKETS WITHIN CONSUMER SECURITY F-SECURE SENSE The missing piece of your connected home F-SECURE SENSE F-SECURE KEY Password manager F-SECURE SAFE Internet security F-SECURE FREEDOME Protect your privacy (VPN) SENSE delivers the missing piece that protects the internet-connected things in consumers homes in the rapid growing IoT market F-SECURE SENSE 7
8 F-SECURE OFFERS ENTERPRISE-GRADE CYBER SECURITY FOR THE MID-MARKET
SCALABILITY THROUGH A GLOBAL NETWORK OF PARTNERS CORPORATE SECURITY PRODUCTS & SERVICES CONSUMER SECURITY PRODUCTS RESELLERS 6000+ CYBER SECURITY SERVICES OPERATORS 200 globally RETAIL & ETAIL 100,000+ corporate customers Tens of millions of consumer customers 9
10 OUR HOLISTIC CYBER SECURITY OFFERING
MAN & MACHINE
DEMAND FOR DETECTION AND RESPONSE SOLUTIONS IS IN RAPID GROWTH 100% 100% 100% 100% Sources: "Forecast Snapshot: EDR" 3/2017, "Market Guide for MDR Services" 5/2017, Gartner 10% 2017 2020 35% SHARE OF ENDPOINTS WITH AUTOMATED DETECTION CAPABILITIES 1% 2016 2020 15% SHARE OF COMPANIES WITH DETECTION AS A SERVICE 12
CAPTURING BEHAVIORAL EVENTS 70M DATA EVENTS/DAY REAL-TIME BEHAVIORAL ANALYSIS 31,500 SUSPICIOUS EVENTS BROAD CONTEXT DETECTION 3 DETECTIONS 1REAL THREAT 13
F-SECURE IS ON A GROWTH TRACK EUR M B2B CAGR 2014-2017 = +17% 180 160 140 120 100 137 46 148 52 158 63 170 72 80 60 40 20 0 92 96 96 19 20 19 2014 2015 2016 98 12 2017 Corporate security Consumer security EBIT 14
KEY FOCUS AREAS IN 2018 Enterprise-grade cyber security for the midmarket Increase share of wallet by cross-selling and upselling Sales expansion of the new corporate security products (RDS & F-Secure RADAR) Successful launch of the new Endpoint Detection & Response solution (EDR) Best-in-class renewal rates Adding new customers in focus geographies Continued growth of cyber security services Active M&A 15
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